Boosting Access to Clean Vehicles: CA Shifts Focus to Low-Income Drivers, Phasing Out Rebates

It has been reported by The Daily Bulletin that California is ending the long-running Clean Vehicle Rebate Project at the end of the year due to a lack of funds. The program will be replaced to focus on low-income drivers.

The Clean Vehicle Rebate Project (CVRP) has been operating since 2010 and has provided over $1.2 billion in rebates over the past 13 years. However, due to its confusing income limits and expensive electric vehicles, the program mostly benefited higher income individuals. The program allowed individuals earning up to $135,000 and couples earning up to $200,000 to qualify, essentially excluding those who could afford EVs without the rebates. Additionally, the program often ran out of funds, resulting in long wait times for rebate recipients.

To address these issues, the program will be replaced by the expansion of the Clean Cars 4 All program statewide next year, which will provide up to $12,000 for low-income individuals to replace their old gas-powered cars with cleaner alternatives. Those not getting rid of an older car can still qualify for up to $7,500 in purchase grants. There is also a federal tax credit available, with income restrictions of $150,000 for individuals and $300,000 for married couples filing jointly.

Despite the benefits of the new program, there are critics who believe that EV rebates should be discontinued now that electric vehicles have become more mainstream. Bill Magavern, policy director of the Coalition for Clean Air, argues that the broad-based rebate was necessary when EVs were considered exotic and unaffordable for most people, but it is no longer needed. However, some dealers are concerned that ending the rebates will deter middle to high-income individuals who have been purchasing EVs and relying on the incentives. Additionally, the affordability of EVs remains an issue, even with rebates in place, especially for low-income buyers.